Lease Receivable

12 Months Ended

Jan. 01, 2022

6. Lease Receivable

Upon the Company’s adoption of ASC 842, the Company recognizes revenue and costs, as well as a lease receivable, at the time the lease commences pursuant to deferred equipment agreements containing embedded sales-type leases. Lease revenue related to both operating-type and sales-type leases for the years ended January 1, 2022 and January 2, 2021 was approximately $59.4 million and $42.6 million, respectively, and is included within product revenue in the accompanying consolidated statements of operations. Costs related to embedded leases within the Company’s deferred equipment agreements are included in cost of goods sold. See “Recently Adopted Accounting Pronouncements” in Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842.

Lease receivable consists of the following (in thousands):


	January 1, 2022		January 2, 2021
Lease receivable	$	102,609	$	81,074
Allowance for credit loss	(255)		(202)
Lease receivable, net	102,354		80,872
Less: current portion of lease receivable	(28,666)		(23,206)
Lease receivable, noncurrent	$	73,688	$	57,666

As of January 1, 2022, estimated future maturities of customer sales-type lease receivables for each of the following fiscal years are as follows (in thousands):


Fiscal year	Amount
2022	$	28,666
2023	24,297
2024	20,552
2025	14,428
2026	7,993
Thereafter	6,418
Total	$	102,354

Estimated future operating lease payments expected to be received from customers under deferred equipment agreements are not material as of January 1, 2022.